Lobby group forms to fight for foreign spouse property ownership
Protesters against a new law which bars Bermudians married to foreigners from owning more than one property if the spouse is to contribute towards it have formed a lobby group.
The new pressure group Land Opportunities for All Bermudians (LOAB) is to meet with Immigration Minister Derrick Burgess and Permanent Secretary Robert Horton on Friday in a bid to outline the concerns of members of the public.
Under the Bermuda Immigration and Protection Amendment Act 2007, Bermudians married to non-Bermudians are prevented from owning more than one property if the spouse is to help pay for it or is to benefit in any way from it, such as by living in the property or receiving rental income.
Those mixed-status couples who owned more than one property before June 22, 2007 will be issued licences for them as long as they apply before June 22, 2010.
However from June 22 this year, Bermudians married to foreigners will be restricted to one licence if in a second purchase, the spouse contributes or will benefit from rent or occupation of that property.
The exception to the rule is 'hardship' cases and those non-Bermudian spouses granted 'Bermudian' status after ten years of marriage — on approval the restriction no longer applies.
For the past 30 years, it has been Government policy to issue only one property licence to non-Bermudian husbands and wives, but Ministers say the new Act is needed to combat loopholes and 'fronting' — a practice whereby foreigners have obtained property illegally using Bermudians as a 'front'.
Mr. Burgess says the new law is necessary to protect land resources on an island where land and housing are in short supply. He has pointed out that 37 percent of residential land in Bermuda is already owned by non-Bermudians under licence.
He said: "We are motivated by the wish to preserve as much of Bermuda's land for Bermudians as possible. In the absence of this legislation, there is nothing to stop a Bermudian who marries a non-Bermudian from acquiring as many properties as they like, and this is simply unacceptable to this Government."
Some members of the public however, have criticised the Bermuda Immigration and Protection Amendment Act as "discriminatory".
LOAB spokesman Ronnie Viera said the lobby group "urges all Bermudians to speak out against a new law that discriminates against Bermudians who have married or may marry a foreigner, with regard to property rights".
Mr. Viera, who is married to a non-Bermudian, outlined a number of scenarios and said LOAB was compiling a list of people affected by the Act so the group could "alert the Ministry of Immigration to the significant impact the law is already having on the voting public".
He said: "The new law now requires a licence if the non-Bermudian spouse contributes financially to, or benefits from the property, the latter being the main reason for the broad reach of the Act. For instance, if you and your non-Bermudian spouse own a home and you inherit a second home, if the rental income from that inherited home is in any way of benefit to your non-Bermudian spouse, you will be in violation of the Act.
"Another situation requiring a licence is where a Bermudian is divorced and owns property, but then marries a non-Bermudian. A worse case would be if he/she owned more than one property as they would have to dispose of all but one of their properties."
Mr. Viera, 44, said the Act also raised concerns for engaged couples who wanted to buy a 'starter home' before getting married. "It is totally unrealistic to suggest that, in a high-priced market like Bermuda, that a single Bermudian can afford to purchase their first home on their own. The Act does not allow two people in a relationship, one of whom is Bermudian, to plan for the future," he said.
"It is equally unrealistic and ridiculous to suggest that the Bermudian spouse can buy whatever property they want, so long as the non-Bermudian spouse doesn't contribute to or benefit from the property. I mean really, how many marriages work that way?"
Mr. Viera said that in some cases, sellers of property have not been willing to wait for a couple to get their licence through, resulting in the mixed status couple losing out on the property.
"Ultimately, Bermudians now end up paying much more for the property because not only are they penalised with a licence fee and associated legal costs, but they are also suffering the added burden of rent and increased purchase prices in some instances in order to secure those properties," added Mr. Viera.
He also pointed to the number of students at overseas colleges.
"How can a single Bermudian say for certain that they will not fall in love with a non-Bermudian some day? Look at all the Bermudians away at university right now. What are the chances that a significant number of those students won't meet and marry a foreigner?"
Mr. Viera said: "The surprising thing is that many Members of Parliament met their spouses in exactly this way and now they have passed this discriminatory legislation.
"It is our understanding that many politicians did not comprehend the actual effect of the amending legislation. They believed, as do many of the general public, that the legislation was only being implemented to stop the practice of 'fronting'."
Both the Premier and Deputy Premier are married to non-Bermudians.
Premier Dr. Ewart Brown married New Yorker Wanda Henton in 2003 while Deputy Premier Paula Cox has been married to Germain Nkeuleu from Cameroon for less than ten years.
Mr. Burgess was last night off-Island and unavailable for comment, but Permanent Secretary Robert Horton said: "The Minister is meeting with Mr. Viera on Friday and will be very pleased to respond to Mr. Viera's questions."
Mr. Horton added that a Government response to some of the issues raised by LOAB in this newspaper would be issued next week. LOAB member Malika Taylor also raised the prospect of mixed status couples being unable to afford their first home if they could not initially rent it out.
"Under the new law, mixed couples must live in the single property they own. It cannot be rented without permission from the Minister. Many Bermudians are only able to purchase their first home by renting it out for a period of time. Does this mean that banks will now withhold funding until both a licence and permission to rent are obtained?," she asked.
"The law also makes it illegal for mixed couples to add an apartment onto a single dwelling home or to subdivide the property in any way. How is this helping Bermudians?"
Ms Taylor said: "LOAB is working to put together a list of examples of people who have already felt the effects of this new law or who fear that it will some day discriminate against their rights to own more than one piece of the Rock.
"This Government has always talked about empowering its people, but this law has the opposite effect for anyone who has or who might eventually fall in love with a foreigner. This law discriminates against Bermudians of all races and classes, and their children.
LOAB can be contacted via email at: loab2007[AT]gmail.com
